According to a recent Mercer survey, workers are beginning to
lower their expectations about how much of their current income
they will be able to replace in retirement.
401k's and Social Security are being projected to provide lower
returns for workers in their 50′s. Younger workers are slightly
more upbeat on 401K investment returns, but expect much less
financial help from Social Security. Either way, the confidence
level continues to take a hit from the reality of how many are
financially unprepared for their later years.
Dividend stock investing is one area that I hope can level the
playing field for many people out there concerned about retirement.
I talk about the power of compounding interest often when referring
to investing in high-quality dividend-paying stocks for the long
term. The example I like to use always is how someone invests a
mere $50 per month - that's $600 per year - in dividend stocks from
the age of 8 to 13, and re-invests those dividends, you would be
accumulating over $1 million by the time you reach the age of 65
(based on historic annualized 11% returns for dividend stocks). The
time is now to begin to embrace the task of building a nest egg and
get yourself up to the challenge of just doing it.
Looking at today's market action, we saw a couple of big M&A
deals with Caterpillar (
) and EMC Corp (
) on the acquirers' side. We also officially heard that BHP
) will not pursue its takeover of Potash Corp (
). It was a bit of a strange session as we looked as though we were
going to be off to the races by early in the afternoon, but sellers
reappeared and the averages fell off those highs. Fertilizer plays
) and Agrium (
) pulled back on the BHP/POT news. Union Pacific (
) held on to close in the green, following a Wall Street analyst
I hope everyone had a great weekend, and be sure to check out
the latest members-only Dividend.com Premium articles you may have
missed from last week. Also, don't forget to check out new
section. If you're newer to our site, you'll also want to view our
"How to Use Our 'Best Dividend Stocks' List" video. And as always,
check out our industry-leading
Best Dividend Stocks
list for the top dividend names to put money into right now.
Thanks for reading, and I'll see you tomorrow!
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here